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Maximize service parts profitability through effective pricing

Pricing professionals must carefully calibrate service parts prices to achieve an optimal balance between profitability and market share. To accomplish this, pricing has to be managed at an individual part-number level and also taking into account that the “one size fits all” model will not fit all. This might sound like mission impossible taking into account that manufactures usually have hundreds of thousands of service parts across all product ranges. Another aspect that makes service parts pricing even more complex is the ever changing business environment leading to a constantly moving target as the service parts lifecycle progresses

 

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